A pretty interesting chart is total China retail bank deposits and China saving rates (there are multiple but broadly). They are actually inverse - as rates come down the number of bank deposits increase. That is why China simply can't "stimulate", they have a structural issue of saving due to the bulge in population retiring. Reducing taxes like VAT is their better option.
That’s a great perspective John, something I haven’t explored in depth. I’ve been aware of the balance sheet recession ongoing with Japan which has infiltrated China, private sector debt has risen drastically forcing the private sector to focus on paying down debts, hand in hand with your point on savings!
A pretty interesting chart is total China retail bank deposits and China saving rates (there are multiple but broadly). They are actually inverse - as rates come down the number of bank deposits increase. That is why China simply can't "stimulate", they have a structural issue of saving due to the bulge in population retiring. Reducing taxes like VAT is their better option.
That’s a great perspective John, something I haven’t explored in depth. I’ve been aware of the balance sheet recession ongoing with Japan which has infiltrated China, private sector debt has risen drastically forcing the private sector to focus on paying down debts, hand in hand with your point on savings!